Reviving Volvo readies for local production

Doug Speck, vice-president for marketing, sales and customer service, speaks during the launch of new Volvo models at the Shanghai auto show. [Photo / China Daily]

Volvo is also showcasing new R-Design versions of the S60, XC60 and V60 at the ongoing Shanghai auto show, their first appearance in Asia.

Continued improvement in products is very important for Volvo, Speck said.

"We earn more respect as a premium brand because of the products we build," he said.

The Volvo V60 diesel plug-in hybrid introduced last year in Europe is the first such vehicle in the world.

It has been so successful the company is working on additional capacity to meet demand, Speck said.

The next step will be the sale of gasoline plug-in vehicles in markets including China and the US, he said.

Brand clarity is another area that he believes is crucial.

Speck said that the company finds there are increasing numbers of people who associate success with a "healthy, balanced life" in China.

Volvo wants to position the brand around this trend.

"It is consistent with what Volvo means and can differentiate the brand from competitors," he said.

One example is Volvo's standard, strict interior air quality system across its entire fleet, Speck said.

He noted a recent study of 43 models in the marketplace showing the Volvo S60 has the best interior air quality.

"This is an example of how we can make a difference," he said.

Speck said that Volvo plans to add about 20 new dealer outlets in China in addition to the current network of some 124 dealerships.

Plans call for the number to increase to about 250 by five years from now, Speck said, noting that the company has decided to switch the focus of dealer expansion to smaller cities.

He said many premium brands have established dealerships in the third, fourth and fifth-tier cities in China, places Volvo also needs to have presence to sell cars.

At the same time, the company will continue to build its service quality and improve customer experience, he said.